The Education Services Portal (ESP) is a subscription-based service, which is designed to support K-12 schools in the Peoples Republic of China with education content, education services (i.e. tutoring, testing, etc.), networking and administration support services for the 21st century. ESP seamlessly integrates with CER’s family of education portals, under its flagship learning portal, CERSP.COM.

ESP provides administrators, teachers, tutors and parents with the tools they need to deliver the highest quality education to China’s children. Using ESP, School administrators can organize intra-school and inter-school academics and administration programs. Teachers can integrate curriculum programs and education resources with other teachers, schools, tutors and communicate directly with students and parents. Many other education services are now possible using ESP, such as school calendars and announcements, homework assignments, tutoring, testing, progress reports, grades and more.

ESP’s Market

ESP primarily target’s China’s K-12 education market and has excellent synergistic growth with the international education markets. China’s education market is one of the largest and fastest growing in the world, with over 600,000 schools, 200 million K-12 students and 12 million teachers.

General Strategy

China Education Resources has spent the past 5 years preparing a comprehensive family of education web portals based on its popular CERSP portal hub. CER identified eight strategic objectives for its ESP business to succeed and has accomplished five of those to date. The Company believes these accomplishments position the company as the first to market and market leader in China’s K-12 online education content and service provider.

Completed Strategic Objectives:

1. Identified a strategic need in China’s education system and a web-based education services portal system to meet that need;

2. Built important personal relationships with key people in China’s education system at the national, provincial and municipal levels;

3. Developed a comprehensive education web portal, which the Company believes is the best in China and offers the services, content, and materials that educators, administrators, students and parents want and need to succeed in the 21st century global market and information age; (CER is committed to updating and upgrading its technology, services and content to retain their competitive edge);

4. Developed relationships and agreements with strategic partners to establish CER as a global company. CER has an important agreement with California State University Monterey Bay (CSUMB), SCOLA and is working on other agreements;

5. Enrolled over an initial selection of K-12 schools, who are integrating CER’s Education Service Portal (ESP) into their curriculums.

Future Strategic Objectives:

1. CER has set a goal of registering 1,000 schools by the end of this fiscal year;

2. Attract as many users as possible in the K-12 education and adjunct markets to use the family of online portals; creating a viral acceptance and prompting the purchase of CER hosted products and services;

3. Scale ESP to take advantage of China’s huge education market.

ESP Membership Fee

The individual ESP membership fee is RMB 60 (USD $8.80) for a 6- month subscription, or RMB 98 (USD $14.00) for a 1-year subscription. After the basic subscription, which allows users to access the education content; individual users are required to pay for premium content and services, using a “points” system. Premium content and services include:

– Assessment Tests

– Student activities center

– Teacher’s continuing study

– Education resources center

– Blog and BBS (free)

– My Study Room (free)

– Short Text Messaging online and wireless

In addition, the Company plans to conduct a market study to assess a possible pricing system for Chinese and international education institutions.

How Users Earn and Consume Points

Each registered user (student, teacher, etc.) access to the ESP portal and approved education content. If a user wants to use any of the premium content then he or she must “buy” it using “points” from their account.

Teacher Continuing Study Program

There are approximately twelve million teachers in China, but only a small fraction are chosen each year to participate in the Teacher Training Program at government expense. Teachers have financial and professional incentives to complete various Teacher Training Program courses. CER offers many government approved courses through its portal system, which may be accessed through ESP at RMB 97.5 ($14.00) to RMB 247 ($36.00) per course. Costs vary, depending on course complexity.

In collaboration with China’s Ministry of Education Curriculum Development Center, China Education Resources Inc. (CER) is helping to transform the curriculum of the world’s largest educational system. Recognizing the need for centralization and increased accessibility to address the Chinese Central government’s 2000 education reform policy changes, China Education Resources Inc. has created educational tools and curricula for China’s entire kindergarten through twelfth grade system. By implementing the government’s goal of converting the existing educational system from memory-based learning to creative thinking and utilizing a more interactive approach to embrace a world-based economy, CER has played an integral part in positioning China’s educational system to reach new heights.

Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of China Education Resources Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.